Pixel Qi has made a name for itself by developing display technology which combines the best of color LCD and E Ink technologies. The displays can function in full color mode with the backlight on, or you can shut off the backlight, cut the screen’s power consumption to just 20%, and view a high contrast, nearly black and white mode which is easily viewable with ambient lighting — even in direct sunlight.

Unfortunately, while Pixel Qi has been showing off the technology for well over a year, we haven’t yet seen any devices using the displays come to market, aside from a 10 inch display DIY kit which went on sale for $275 earlier this year. Pixel Qi promises to showcase more 10 inch screens as well as 7 inch displays at CES next month. And today Pixel Qi founder Mary Lou Jepsen announced that Pixel Qi has partnered with CPT to manufacturer “three new screens of various sizes” which are due out in 2011.

CPT has also been working on sunlight-readable display technology, so the partnership makes a lot of sense. While we know that the companies will be showcasing 10 inch and 7 inch 1024 x 600 pixel transflective displays in January, it’s not clear what other screen sizes we’ll be seeing from Pixel Qi and CPT in the future. My guess would be 11.6 inch, but I wouldn’t say no to a 4 inch transflective smartphone display, even if it adds a bit of thickness to a typical smartphone display.

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Well, there is will a device with a Pixel Qi screen on the market by January 9th 2011 if Notion Ink is to believed. I think it is sort of shocking that Pixel Qi screen have not been used in more devices. But lets face it things are sold a maximum profit minimum production cost. Putting a screen on a device, even as an option, from a company that has limited fabrication ability must be hard. I hope this deal allows more screens to be made, thus this screen will be used more. Then again such a screen would be less useful if paired with a typical shiny screen surface….thus another added cost to having it on a device. For the time being it seems like Notion Ink’s Adam will be the only device that will really show off why a transflective screen is worthwhile.